HUD Practice Exam
HUD Practice Exam 2025 (Latest Questions with
Verified Answers) Guaranteed pass 100%
A credit report may contain which information?
The number of accounts in collection status
Which document is most important when working with a client to develop an initial budget as part of a
Client Action Plan?
Pay Stub
A client would like to purchase a home within one year. The client is motivated to increase household
income as a way to save for a down payment and qualify for a loan. Which is the
best solution for the client to reach this goal?
Find a second job
Six months ago a client left a job as a reporter to start a
business in the retail industry. To prepare to buy a house, the client closed credit card accounts and has
been using savings to
pay down credit card debt and collections. The client has not
been able to save much for a down payment with all the debt
payments but knows about an affordable homeownership
program that only requires a 1% down payment with an FHA
loan. What might result from the client closing the credit card
accounts?
, HUD Practice Exam
It increases credit utilization, causing a negative impact on the credit
score.
Which action would a client take to improve a credit score?
Pay delinquent accounts
A client does not receive a written monthly statement from the credit card company. Which credit law
could this omission violate?
Fair Credit Billing Act
A client shopping for a mortgage loan presents a housing counselor with an offer from a local mortgage
lender. The interest rate on the offer is 7.5% for a 30-year fixed rate mortgage with a 20% down
payment required. The counselor reviews the client file and determines the client's credit score is 725
and the client's total debt-to-income ratio is 20%.
"I am unable to determine whether the loan is predatory, but I suggest you shop around with other
lending sources."
Which action should a counselor recommend a client take first after discovering identity theft?
File an identity theft report
In which situation would a client's responsibilities, recurring costs, and upfront costs be evaluated?
When weighing housing options
A client works 40 hours a week making $15 an hour. What is the highest monthly mortgage the client
can afford based on income if the client secures a conventional loan?
HUD Practice Exam 2025 (Latest Questions with
Verified Answers) Guaranteed pass 100%
A credit report may contain which information?
The number of accounts in collection status
Which document is most important when working with a client to develop an initial budget as part of a
Client Action Plan?
Pay Stub
A client would like to purchase a home within one year. The client is motivated to increase household
income as a way to save for a down payment and qualify for a loan. Which is the
best solution for the client to reach this goal?
Find a second job
Six months ago a client left a job as a reporter to start a
business in the retail industry. To prepare to buy a house, the client closed credit card accounts and has
been using savings to
pay down credit card debt and collections. The client has not
been able to save much for a down payment with all the debt
payments but knows about an affordable homeownership
program that only requires a 1% down payment with an FHA
loan. What might result from the client closing the credit card
accounts?
, HUD Practice Exam
It increases credit utilization, causing a negative impact on the credit
score.
Which action would a client take to improve a credit score?
Pay delinquent accounts
A client does not receive a written monthly statement from the credit card company. Which credit law
could this omission violate?
Fair Credit Billing Act
A client shopping for a mortgage loan presents a housing counselor with an offer from a local mortgage
lender. The interest rate on the offer is 7.5% for a 30-year fixed rate mortgage with a 20% down
payment required. The counselor reviews the client file and determines the client's credit score is 725
and the client's total debt-to-income ratio is 20%.
"I am unable to determine whether the loan is predatory, but I suggest you shop around with other
lending sources."
Which action should a counselor recommend a client take first after discovering identity theft?
File an identity theft report
In which situation would a client's responsibilities, recurring costs, and upfront costs be evaluated?
When weighing housing options
A client works 40 hours a week making $15 an hour. What is the highest monthly mortgage the client
can afford based on income if the client secures a conventional loan?
